TOPIC 3, TAXATION PART 1 Flashcards
is the
National Internal Revenue Code of 1997.
The Bureau of Internal Revenue (BIR) is
the primary implementing agency of this
law.
Governing tax law
is the process by which the
the government collects revenue in order to
pay for its expenses.
Taxation
is defined as the tax on
the net income or the entire income
realized in one taxable year.
Income tax
WHO ARE REQUIRED TO PAY INCOME TAX IN
THE PHILIPPINES? (SECTION 23 OF THE
NATIONAL INTERNAL REVENUE CODE [NIRC]
OF 1997)
A citizen of the Philippines
A non-resident citizen
An OFW
A foreigner
A domestic corporation
A foreign corporation
A citizen of the Philippines, living in the
Philippines..
is taxable on all income earned
inside and outside the Philippines;
A non-resident citizen
is taxable only on
income earned in the
Philippines
An OFW is taxable…
only on income earned
in the Philippines
A foreigner living in the
Philippines is taxable…
only
on income earned in the
Philippines.
A domestic
corporation is taxable….
on all income derived
from sources inside
and outside the
Philippines
A foreign corporation is taxable…
only on the
income derived inside the Philippines
What is taxation?
is the process by which the
the government collects revenue in order to
pay for its expenses.
What is income tax?
is defined as the tax on
the net income or the entire income
realized in one taxable year.
Who are required to pay income tax in the Philippines?
A citizen of the Philippines
A non-resident citizen
An OFW
A foreigner
A domestic corporation
A foreign corporation
The Philippines individual income tax is progressive. In this
context, what does progressive means?
higher tax rates for those with higher income or more wealth
How much personal and additional exemptions are allowed by
the Philippine Tax Law?
50,000 personal exemptions and 25,000php for each dependent
